WINSTED >> Jane Wall has only been on the job for six weeks, but as Winsted's interim finance director, she has already begun making changes in the finance department.

Wall took over as interim finance director on Dec. 10, one month after former finance director Henry Centrella was put on paid leave. Centrella, who was the first finance director in Winsted's history and held the title for 32 years, was fired on Jan. 17 under a criminal investigation and concerns about the town's empty coffers.

"The first thing I'd like to point out to you is that you're in a very fiscally distressed situation," said Wall at the Jan. 22 Board of Selectmen's meeting.

But Wall, who worked in municipal finance for six years after pursuing other avenues in accounting, noted that Winsted is hardly unique. Nearly every small town that did not have major cash reserves before 2007 is in the same boat as Winsted finds itself, Wall said, adding that "there are a lot of factors that have gone into this that are beyond your control."

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"I would like to point out to you that the fiscal problems that you have, have been on their way for quite some time," Wall added. "The worst of it may have been possible to ignore in previous years, but they came to a head after this recession."

Part of the reason that Winsted is in such dire straits, Wall said, was because the town does not have substantial cash reserves. Wall put together a list of the city's cash accounts for the selectmen, and the town has just under $2.3 million in the bank for all of its accounts -- including those that Winsted cannot use for its own purposes.

"We don't really have that much money," said Wall.

Most of the town's cash on hand is the general fund, which totaled $1,693,180.15. Winsted has numerous other accounts at two different banks, but some of these accounts are for other purposes, such as the Winsted Fire Department's annual carnival.

"It's not town money and it's not available to us," said Wall.

Subsequently, Winsted's options to help recover its finances are limited, and so is Wall's time in town. She will only serve as interim finance director until March 10, at which point Winsted should have a new permanent finance director. By firing Centrella, Winsted cleared the path to hire a permanent director, and the town is now running background checks on applicants.

But Wall has praised Winsted's finance department for its energy and enthusiasm. Wall has already begun taking measures to defend Winsted, and the employees are on board for changes.

"I'm highly impressed by what I have seen," Wall said. "They're waiting to be able to implement some changes."

One of those changes has been installing the upgrades for the town's accounting system. Winsted purchased the upgrades previously, Wall said, and even though the town cannot afford new programs, it can use more of what it has. The software upgrade will do just that, as the newer version will offer more reporting features which should help the town keep track of transactions. Wall remarked that thanks to the new software upgrade and other changes in procedures, "we're going to have a much higher quality in our documentation."

"I'm so thrilled to see enthusiastic people embracing change," said Wall.

Long-term changes, though, will call for the town to change its approach. Wall urged the Selectmen to craft a multi-year strategic plan and to dial down the temperature of discussions during meetings. The plan would show some sense of direction, Wall said, even if the town cannot stay on track due to external factors.

"Even if you can't follow it," Wall said, "if you decide not to do it for very legitimate reasons, that's one thing, but to not have it on your plan, that's doing yourselves a disservice."

Winsted should also address its policies and procedures, Wall said, noting that she is already reviewing the town's manual and trying to come up with solutions.

"This will be an ongoing thing for many, many years to come," said Wall. "I'd like to demonstrate to the auditors that we're making an effort."

Staffing levels were also a concern for Wall, who suggested hiring more employees, simply from the perspective of providing backup for the current staff. Specifically, Wall urged the town to bring in a budget analyst, but anyone who could capably cover for the existing staff would be welcome as well. Wall also recommended that the town should give employees a chance to take accounting or computer classes at Northwestern Connecticut Community College.

"It's not that expensive," Wall said of the classes, "but it could be a huge payoff."